Change in Danone’s Governance

On September 2, 2014, on the recommendation of Chairman and CEO Franck Riboud, Danone’s Board of Directors voted to separate the functions of Chairman and CEO and to appoint Emmanuel Faber as CEO, with Franck Riboud remaining as Chairman of the Board. As part of this new governance structure, Bernard Hours’ mandate as Co-COO was terminated and the Board thanked him warmly for his contribution to Danone’s success over the past 30 years.

This change in governance, which will take effect on October 1, 2014, reflects Mr. Riboud’s desire to concentrate on the key strategic issues facing Danone in the medium and long term and to lay the groundwork for a smooth succession.

Using the same rationale, the Board of Directors voted to set up its own Strategy Committee, to be headed by the Chairman with the participation of the CEO. To ensure that Danone continues to benefit from Franck Riboud’s insights and in-depth knowledge of its markets, corporate culture and business environment, the Board also opted to expand the Chairman’s duties. This decision, made on the recommendation of the Nomination and Compensation Committee, leaves the powers of the Board of Directors and the CEO unchanged, but will enable the Chairman and the CEO to work in concertation on major issues in Danone’s corporate life, and allows the Chairman to represent Danone in his contacts

Addressing this decision, Franck Riboud said; “I joined Danone 33 years ago and have managed our day-to-day operations for over 18 years. During that time, our company has undergone incredible change and we have achieved the goals we set back in 1996. Today Danone is a truly global company, oriented toward emerging markets, realigned around a select number of promising businesses in which we are market leaders, and focused on pursuing growth. We have achieved spectacular growth while remaining true to our dual commitment to business success and social progress, and we are still a pace-setter for social innovation. I want to ensure that Danone has everything it needs to lay the groundwork for its future. Which is why I recommended separating the functions of Chairman and Chief Executive Officer and paving the way for the arrival of a new generation to guide Danone.

Since 1997, Emmanuel Faber has worked with me on the Executive Committee and the Board, playing a critical role in making and deploying all major decisions concerning Danone. Now 50, he has in-depth knowledge of our company’s structures and operating modes, an understanding of the business and social challenges facing our core businesses, innovative flair, an uncompromising focus on results, and a deep respect for and commitment to Danone’s culture and brands, all of which make him a natural choice to lead our 100,000 employees. He has the full trust of the Board of Directors. And I am delighted to support him and continue to work closely with him in expanding Danone.”